NSW Right faction powerbroker and Assistant Treasurer Mark Arbib has resigned from the ministry and the Senate.

Senator Arbib said that everyone in the Labor Party had a responsibility to help the party mend the scars of the leadership battle.

Faction leader Senator Mark Arbib resigns, describing the past week in politics as one of the "most difficult" in Labor history. Photo: Alex Ellinghausen / Fairfax

Senator Arbib - often described as one of the "faceless men" for his role in helping remove Kevin Rudd as PM in 2010 - described his shock resignation as a "gesture of goodwill" to the party to help it heal.

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Senator Arbib, who also served as Sports Minister, said that he was also resigning from the Parliament for family reasons.

He said that after he was promoted to the ministry late last year, his daughter cried because it meant he would spend more time at work.

"Don't take the job, Dad," she said.

Unlike a lower house seat, his resignation from the Senate will not force a by-election. The NSW Parliament will choose a replacement from the Labor Party.

Senator Arbib said that the past week in politics had been one of the "most difficult" weeks in Labor Party history.

He said that leadership ballots were "difficult complex and emotional" events.

Senator Arbib said that he believed Prime Minister Julia Gillard could and would win the next election but it required a commitment from the caucus to put recent events behind them.

"What it requires is professionalism," he said.

Senator Arbib said that healing the party's scars required more than talk.

"It requires more than words, it requires action," he said.

"Everyone has a responsibility, all of us have to play a part. And that includes me."

Senator Arbib was promoted in Ms Gillard's cabinet reshuffle in December last year when he became Assistant Treasurer. Senator Arbib was elected to the Senate in 2007, with his term starting in July 2008.

He said that he had come to his decision to resign by himself.

Senator Arbib said that he stood by his decisions in 2010 that lead to the dumping of Mr Rudd, and that he had spoken to the Prime Minister in the wake of the partyroom vote this morning.

Senator Arbib said that his conversation with Ms Gillard was "emotional". He described the Prime Minister as both "tough" and a "friend".

This afternoon, the Prime Minister thanked Senator Arbib for his contribution to Labor.

"His resignation today will be received with a heavy heart by the members of our party," Ms Gillard said in a statement.

With several positions now vacant on her frontbench, Ms Gillard said that she will make an announcement about future ministerial arrangements "in due course".

Senator Arbib said that his resignation provided an opportunity for party renewal.

"I don't think it's a secret I have been a faction leader," Senator Arbib said.

But he echoed Mr Rudd's peaceful words today, saying that he was not bitter about what had happened, and his decision to leave.

Senator Arbib described the "faceless man" tag as "ridiculous".

He said that his resignation from the ministry was effective from this Friday. His resignation from the Senate was effective from next Friday.

His resignation from the position of Sports Minister means he won't represent the government at the 2012 London Olympics.

He said his immediate plan was to take a break.

Immigration Minister and key Rudd supporter Chris Bowen said that he did not see Senator Arbib's resignation coming.

"I'm surprised and disappointed," he told Sky News - adding that he did not need to do it.

But he said that he could understand. Both men are around 40 with young families.

27 Feb
Julia Gillard has triumphed over Kevin Rudd 71 votes to 31 in a battle for the Labor party leadership. Both have now vowed to set aside internal party squabbles and focus their efforts on beating Tony Abbott in the 2013 federal election. Here's how the events panned out. All times in AEDT.

27 Feb
'There was little sympathy on social media for Labor powerbroker Mark Arbib when he announced his resignation in Canberra this afternoon, with jibes about his role as one of the so-called faceless men behind the ousting of Kevin Rudd as prime minister.